HomeMy WebLinkAbout241-20 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 241-20
File Number: 2020-0772
IN -PLACE MACHINING COMPANY:
A RESOLUTION TO APPROVE AN AMENDMENT TO THE CONTRACT WITH IN -PLACE
MACHINING COMPANY IN THE AMOUNT OF S20.461.31 FOR ADDITIONAL COSTS
ASSOCIATED WITH THE REPAIR OF A ROTOR SHAFT ON THE THERMAL DRYER AT
THE BIOSOLIDS MANAGEMENT SITE
WHEREAS, on June 4, 2020, the City Council approved Ordinance 6320 authorizing a contract with
In -Place Machining Company in the amount of $56,000.00 for an emergency repair of the rotor shaft
on the thermal dryer at the Biosolids Management Site and also approved a project contingency in the
amount of $8,400.00; and
WHEREAS, the original cost estimate for this project was based on the availability of two pieces of
equipment at the time the quote was submitted but, due to the City approval process timeline, that
equipment was no longer available at the time the contract was approved; and
WHEREAS, the emergent need for this project forced In -Place Machinery Company to mobilize with
the equipment that was available at the time and, as a result, it was only able to machine one end at a
time, instead of both ends at the same time as originally planned leading to an extended period of
performance on site with a cost overrun of $20,461.31 for a total cost of $76,461.31.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves an amendment
to the contract with In -Place Machining Company in the amount of $20,461.31 for additional fees
associated with the repair of a rotor shaft on the thermal dryer at the Biosolids Management Site.
Page 1 Printed on 1019120
Resolution: 241-20
File Number.' 2020-0772
PASSED and APPROVED on 10/6/2020
Attest:
Kara Paxton, City Clerk
FAYETTEVILLE;�—
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WAY(; iONtCpJ``��
Page 2 Printed on 109/20
City of Fayetteville, Arkansas 113 West Mountain Street
/ Fayetteville, AR 72701
II`( (479)575-8323
Text File
File Number: 2020-0772
Agenda Date: 10/6/2020 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 6
IN -PLACE MACHINING COMPANY:
A RESOLUTION TO APPROVE AN AMENDMENT TO THE CONTRACT WITH IN -PLACE
MACHINING COMPANY IN THE AMOUNT OF $20,461.31 FOR ADDITIONAL COSTS
ASSOCIATED WITH THE REPAIR OF A ROTOR SHAFT ON THE THERMAL DRYER AT THE
BIOSOLIDS MANAGEMENT SITE
WHEREAS, on June 4, 2020, the City Council approved Ordinance 6320 authorizing a contract with
In -Place Machining Company in the amount of $56,000.00 for an emergency repair of the rotor shaft on the
thermal dryer at the Biosolids Management Site and also approved a project contingency in the amount of
$8,400.00; and
WHEREAS, the original cost estimate for this project was based on the availability of two pieces of equipment
at the time the quote was submitted but, due to the City approval process timeline, that equipment was no
longer available at the time the contract was approved; and
WHEREAS, the emergent need for this project forced In -Place Machinery Company to mobilize with the
equipment that was available at the time and, as a result, it was only able to machine one end at a time, instead
of both ends at the same time as originally planned leading to an extended period of performance on site with a
cost overrun of $20,461.31 for a total cost of $76,461.31.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE,ARKANSAS:
Section I: That the City Council of the City of Fayetteville, Arkansas hereby approves an amendment to the
contract with In -Place Machining Company in the amount of $20,461.31 for additional fees associated with the
repair of a rotor shaft on the thermal dryer at the Biosolids Management Site.
City of Fayetteville, Arkansas Page 1 Printed on 1017/2020
City of Fayetteville Staff Review Form
2020-0772
Legistar File ID
10/6/2020
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Tim Nyander 9/15/2020 WASTEWATER TREATMENT (730)
Submitted By Submitted Date Division / Department
Action Recommendation:
Staff recommends the approval of additional costs in the amount of $20,461.31 associated with repair of the rotor
shaft on the thermal dryer at the Biosolids Management Site.
Budget Impact:
5400.730.5800-5414.00 Water and Sewer
Account Number
02069.1
Project Number
Budgeted Item? Yes
Does item have a cost? Yes
Budget Adjustment Attached? No
Fund
Plant Pumps and Equipment- WWTP
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Project Title
$ 1,477,313.00
$ 749,160.81
$ 728,152.19
$ 20,461.31
$ 707,690.88
V20180321
Purchase Order Number: 2020-494 Previous Ordinance or Resolution # 6320
Change Order Number:
Original Contract Number:
Comments:
1
Approval Date:
Q CITY OF
�® FAYETTEVILLE
ARKANS
ARKANSAS
MEETING OF OCTOBER 6, 2020
TO: Mayor and City Council
THRU: Susan Norton, Chief of Staff
FROM: Tim Nyander, Utilities Director
DATE: September 15, 2020
CITY COUNCIL MEMO
SUBJECT: In -Place Machinery — Additional Costs for Biosolids Dryer Shaft Repair
RECOMMENDATION:
The staff is recommending approval of additional labor costs associated with the repair of the
rotating shaft on the thermal dryer at the Biosolids Management Site by In -Place Machining
Company.
BACKGROUND:
On May 171h, 2020, the thermal dryer rotor shaft moved from its fixed position. We selected In -
Place Machining Company to provide a quote to come on site to build up the surface of the
shaft and then mill the shaft to within original shaft diameter tolerance for proper seating of the
bearings. This firm specializes in repairing rotating equipment shafts in place on a nationwide
basis and has the expertise and equipment to perform this unique service.
DISCUSSION:
In -Place Machining Company submitted a Time & Material quote with an estimated cost of
$56,000.00 plus applicable taxes. The City added $8,400.00 as contingency. The original
estimate for this project was based on the availability of two pieces of journal equipment being
available at the time of the award. Due to the extended approval process the additional
equipment was no longer available for this project. The emergent need for this project forced In -
Place machinery to mobilize with the equipment that was available at the time. As a result, they
were only able to machine one end at a time, instead of both ends at the same time as originally
planned. This led to an extended period of performance on site. Their cost overrun is
$20,461.31 for a total cost of $76,461.31. In -Place has provided a full itemization of pricing.
Regardless of the overrun, the on -site repair saved the City tens of thousands of dollars in
shipping the shaft off -site as well as at least a month of downtime on the dryer. Extra landfill
costs would have been over $85,000, but would be offset by reduced natural gas costs, leaving
a net of $60,000. Staff recommends approval of this cost overrun.
BUDGET/STAFF IMPACT:
Funds are available in the Plant Pumps and Equipment - WWTP account. This item was
presented to the Water, Sewer and Solid Waste Committee on September 8, 2020, and
received unanimous approval to forward it to the City Council with a recommendation for
approval.
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
IN -PLACE
MACIYNING
coalwk►
TO City of Fayettville Arkansas
113 West Mountain Street
Fayetteville, AR 72701
*" INVOICE"
P.O. NO. 2020-00000494
JOB NO. 57204
INVOICE NO. IPMINV-57204
DATE W31/2020
TERMS Net30
In -Place Machining Comany, LLC
3811 N Holton Street
Milwaukee, WI 53212
Webshe: www.lnplace.com
Email: Help&nplace.com
Interest charged at the rate of 1 1l2%
compounded monthly on past due
amounts
WORK PERFORMED: Undercut, sleeve, and final machine (2)12' diameter 8' long thermal dryerjoumals. Work scope
was modified to sleeve thus increased total costs. Work was performed In your Fayetteville, AR
facility, and completed on July 2, 2020.
IPM Thanks you for your Businessl
SHOP LABOR:
Technician - Straight Time 96.73 Hours X 99.85 9,658.53
Technician - Overtime 11.00 Hours X 149.78 1,647.58
TOTAL SHOP LABOR: 107.73 11,306.11
SITE & TRAVEL TIME:
Technician - Straight Time 16.00 Hours X 107.35 1,717.60
Technician - Straight Time
126.00 Hours X 99.85
12.780.93
Technician - Overtime
115.00 Hours X 149.78
17,224.70
Technician - Double Time
16.00 Hours X 199.70
3,195.20
TOTAL SITE & TRAVEL TIME:
275.00
34,918.43
EXPENSES & PURCHASED SERVICES
Alrfare
951.80
Car Rental
857.42
Consumables from IPM Inventory
643.96
Consumabtes Purchases
724.50
Freight
5,041.37
Lodging
2,665.08
Outside Purchased Services
92.64
Per Diem Cash Expense
1,560.00
TOTAL EXPENSES & PURCHASED
12,536.77
SERVICES:
EQUIPMENT USE CHARGES:
qu pment Usage 12.00 WE— 57 1.475.00 17,700.00
TOTAL EQUIPMENT USE CHARGES: .12.00 17,700.00
Wire / ACH Transfer Instructions (ACH Preferred):
Bank
JPMcrgan Chase Bank N.A.
Acct Name
In -Place Machining Company
Account#
623470937
ABAN
075000019 {ABA for Wires Onty 021000021)
Swift
CHASUS33
TOTAL $ 76,461.31
TAX 0.00
SUBTOTAL 76,461.31
MONEY APPLIED 0.00
TOTAL DUE THIS INVOICE (USD) $76,461.31
In -Place Machining Company
3811 N. Holton St. • Milwaukee, WI • 53212
PH. (414) 562-2000 FX.(414)562-2932
www.inplace.com help@lnplace.com
August17,2020
Mr. Tim Nyander
City of Fayetteville, Arkansas
113 West Mountain Street
Fayettville, AR 72701
Via e-mail:
tnyander@fayetteville-ar.gov
Subject:
Notice of project overage
Ref.
Thermal dryer journal repair
IPM Ref:
IPM job # 57204
Dear Mr. Nyander,
This is to inform you of current overages above and beyond our budgetary quote 40220 Rev 1, purchase order
2020-00000494 to Undercut, sleeve, and final machine (2)12• diameter x 6" long thermal dryer journals located in
your Fayetteville, AR facility. The intent of this notice is to highlight increases in project costs and 8mellne that will
adversely affect the overall project costs of final invoice. Please note that the below items are estimates only and
will be calculated at standard T&M rates below.
The original estimate for this project was based on the availability of (2) complete pieces of journal equipment
being available at the time of award. Due to the extended approval process the additional equipment was no
longer available for this project The emergent need for this project forced us to mobilize with the equipment that
was available at the time. As a result of this we were only able to machine one end at a time instead of having a
machine on each end as originally planned. This led to an extended period of performance on site.
The estimated time to machine the split sleeves was not accurate to the amount of time required to manufacture.
This was partially due to the change from the original plan to weld the journals to the decision to install split
sleeves instead. This additional time estimate should have been added to Rev 1 but was not included
erroneously.
Additionally, the expedited shipping charges to deliver the (2) sleeves to site was considerably higher than we had
anticipated. This was likely due to the overwhelming reduction in shipping capacity due to COVID-19.
Impact Condition
The following items have been identified as reasons for schedule or budget impacts.
Item Description Estimated Impact
Reduction of available machines at time of award
Reduction In Machines reduced our onsite machining efficiency. $10,000.00 I
ShopMachining Time Additional shop time needed to manufacture (2) split
9 sleeves. $5,000.00
Additional Shipping Costs Higher than expected shipping costs that were directly $5,000.00
related to the project
Estimated Increase $20,000.00
Page 1 of 2
In -Place Machining Company
3811 N. Hatton St. • Milwaukee, WI • 53212
PH. (414) 562-2000 • FX.(414)562-2932
www.inplace.com • help@tnplace.com
Time, Material, & Expense Pricing
A) The following hourly labor rates apply to all in -shop logistics planning and scheduling, mobilization and
demobilization, travel, and all on -site time including delay and stand-by time.
Straight Time Over Time
(First 8 hr / day) (Over 8 hr/day. Sat. Sun) Holidays
Techniclan(s) $99.85 $149.78 $199.70
Field Night Shift $107.35 $161.03 $214.70
In -Place Machining Company technicians work a minimum of 12 hours per day, 7 days per week. All delay
and stand-by time, including non -working site days will also be charged at a minimum of 12 hours per
technician, per day plus expenses. Travel days are charged at actual hours traveled.
B) Expenses are charged at our cost plus 15%. Expenses generally includes, but are not limited to, the
following:
Air & surface transportation, lodging, car rental, and all other purchased services.
Consumables, materials, special tooling, etc. whether from IPM inventory or purchased for this job.
C) Per diem will be charged at $65.00 per technician, per day. This generally covers all personal meal and
Incidental expenses, and is in addition to the rates listed above.
D) An equipment usage charge of $1,475.00 per machine setup per shift will apply. This generally covers
machines, equipment, hand tools, and instrumentation necessary to complete the project Equipment
usage can vary depending on the type and quantity used, and is generally charged for all shifts from the
start of site work until completed. An equipment transit charge of 2 shifts is added to the on -site time for
equipment transit time (domestic transit) regardless of actual duration, (1 outbound and 1 return.)
Thank you again for the opportunity to perform this project for you. We value your business and look forward to
working with you for completion of this project in a timely and expert manner. If you have further questions or
comments, please feel free to contact me at any time at 414.562.2000 x211, or via fax at 414.562.2932. You can
also contact me via e-mail at JAdams@inplace.00m.
Please be sure to visit us on the web at www.inplace.com to learn more about our company and the services we
offer.
Respectfully,
In -Place Machining Company
Jason Adams,
Technical Representative
Page 2 of 2
113 west Mountain Street
Fayetteville, AR 72701
(479) 575.8323
Ordinance: 6320
File Number: 2020-0447
IN -PLACE MACHINING COMPANY:
AN ORDINANCE TO WAIVE CONiPf IITIVE BIDDING AND ACCEPT A QUOTE IN THE
AMOUNT OF S56.000.00 PLUS APPLICABLE TAXES FROM IN -PLACE MACHINING
COMPANY FOR AN EMERGENCY REPAIR TO THE ROTOR SHAFT ON THE THERMAL
DRYER AT THE BIOSOLIDS .MANAGE\4ENf SITE. AND I-0 APPROVE A PROJECT
CONTINGENCY IN THE AMOUNT OF S3.400.00
WHEREAS, on May 17. 2020. the thermal dryer rotor shafl experienced a malfunction and. after
disassembly and inspection of the rotor shaft, it showed slight damage to the bearings seals and
significant damage to the rotor shall: and
WHEREAS, an operational thermal dryer, in combination with the Biosolids Management Site's solar
house dryers, reduces 100.000 pounds of daily biosolids volume to 15.000 pounds of Class -A.
Exceptional Quality fertilizer and allows the City to achieve substantial savings on landfill costs each
year: and
WHEREAS, In -Place Machining Company specializes in repairing rotating equipment shafts and has
the expertise, personnel. and equipment to perform the service so the thermal drver can be put back
into service quickly.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE,ARKANSAS:
Section I: That the City Council ofthe City of Fayetteville. Arkansas hereby finds the above
circumstances make competitive bidding not feasible or practical and therefore waives the
Page 1 Prfnfw en d&20
Ordinance: 6320
File Number 2020-0447
requirements of Rbnnal competitive bidding and accepts a quote in the amount of $56.000.00 plus
applicable taxes from In -Place Machining Company for an emergency repair to the rotor shaft on the
thermal drver at the Biosolids Management Site. and further approves a project contingency in the
amount of $8.400.00.
Section 2: 'Phis contract is contingent upon In -Place iblachinin g Company providing the City of
Fayetteville documentation of its authority to do business in the state of Arkansas.
PASSED and APPROVED on 6/4/2020
Attest:
, Of JG��
_ FAYETTEVILLE:
Kara Paxton. City Clerk Treasurer,��.
Page 2 Printed an SWO